Congolese Microcredit Company (SMICO): Provinces of North and South Kivu, Tanganyika and Tshopo - D.R. Congo
- D.R. Congo
- Resources
- Access to Finance
- Access to Capital
- Access to Capital
Access to financial services in the DRC
Most women who start their own businesses do so with less money than men, and rely more on personal savings or loans from friends or family .
Lack of access to finance is a crucial problem for women entrepreneurs wishing to develop their activities in the DRC.
Given that the financial intermediation rates in the DRC remain one of the lowest in the world, the conditions for granting loans by the banks are difficult and do not allow women to have easy access to them.
Intermediation is a process by which customer deposits are transformed into loans.
Industry Promotion Fund-FPI
After an observation that the Industrial Sector lacked the means to ensure its effective start-up and the insufficient self-financing of companies to cover their investment needs. The Congolese State has therefore created the Fund for the Promotion of Industry-FPI by Ordinance Law No. 89-171 of August 07, 1989, which is an appropriate framework for financing the industrial sector with longer terms and at low interest rates.
This public establishment is established in all the provinces of the Democratic Republic of Congo whose General Management is located in Kinshasa precisely in the commune of Gombe at No. 16 Avenue Lukusa opposite the Cercle Elaeis.
The FPI's main mission is to promote the development of Congolese industry by, among other things:
- Support for existing industries;
- The promotion of new industries;
- The promotion of small and medium-sized enterprises;
In order to promote Small and Medium Enterprises (SMEs), the Congolese Minister of Industry has decided that financing from the Industry Promotion Fund-FPI intended for investment will now be granted at a rate of maximum interest of 6% for all businesses. Specifically the business projects of young and female entrepreneurs will be financed at 4%.
The costs of opening the file are equivalent in Congolese francs to two hundred and ninety US dollars (US$290) at the daily rate and payable to the FPI's accounts housed in commercial banks, while indicating the name of the Promoter Company and the nature of the payment ( Expenses for opening the file ).
Click here to download the funding application form
To contact the head office of the Fonds de Promotion de l'Industrie-FPI
- +243 816 905 362
- dgkinshasa@fpi-rdc.cd
- dprsecretariat@fpi-rdc.cd
Moreover, the only other possible source of financing for women are banks and local microfinance institutions.
A few establishments offer credit services to their clients with particular attention to women entrepreneurs. These are among others:
Congolese Microcredit Company (SMICO): Provinces of North and South Kivu, Tanganyika and Tshopo
SMICO is a microfinance institution created by Belgian-Congolese shareholders in 2009.
SMICO operates with an approval from BCC No. I0021 and identified with the RCCM under No. RCCM-CD/BKV/RCCM/14-B-008.
It has its registered office in Goma, Avenue Vanny Bishweka, n° 20- Commune de Goma, Goma/ Nord-Kivu. To date, SMICO has 6 branches: Bukavu, Goma, Uvira, Bunia, Kalemie and Kisangani.
Credit, Conditions and Benefits that SMICO offers
Type of credit | Terms | Advantage | Rising |
Professional credit: This credit is intended for Micro, Small and Medium | - Be a savings client of SMICO with regular movements on their savings account; - Be a stable resident within SMICO's radius of action or have an income-generating activity there for more than three years; - Present a satisfactory loan history, if applicable; - Provide adequate and appropriate guarantees. | - The file is processed quickly (Maximum 15 days) - Competitive interest rate with a system of - Adapted and flexible guarantees - Maturities of up to 36 months depending on the object to be | Ceiling amount according to your repayment capacity |
Pamoja credit: This credit is suitable for very small businesses | - Be a savings client of SMICO with regular movements on their savings account; - Be a stable resident within SMICO's radius of action or have an income-generating activity there for more than three years; - Present a satisfactory loan history, if applicable; - You must form a group of 7 or 15 people (minimum size 7 and maximum 15 people), have an income-generating activity. | - Easy access to credit without material collateral, without - Financial education offered to clients free of charge - Sharing experiences between peers - Strengthening the bonds of solidarity between the - Maturity between 4 and 6 months; - The credit is granted without material guarantee. | The credit is granted in 4 cycles: The first cycle the amount varies between 100 and 200$, the second cycle maximum 500$, The third cycle maximum $700 and fourth cycle maximum $1000 per member of the group. The first cycle the term is 4 months but from the second to the fourth cycle it is 6 months |
Kijana Inuka: This credit is for young people who are independent, | - Be a savings client of SMICO with regular movements on their savings account; - Be a stable resident within SMICO's radius of action or have an income-generating activity there for more than three years; - Present a satisfactory loan history, if applicable; - Provide adequate and appropriate guarantees. | - Easy access for young people to credit without any - Repayment term of up to 36 months; - Attractive interest rate; - No file opening fees or savings |
Addresses and Contacts
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Headquarters-Goma | Bukavu |
Boulevard Kanyamuhanga, 20, Avenue Vanny Bishweka, | 145 Avenue Patrice Emery Lumumba, Red Light Roundabout, |
Municipality of Goma – Goma | Municipality of Ibanda – Bukavu |
+243 (0) 818 443 013, +243 977 410 354 | +243977482833 |
info@smico.org – goma@smico.org | |
Uvira | Bunia |
Avenue Du Congo, 37 | Liberation Boulevard, 147 |
Kimanga district – Uvira | Lumumba district – Bunia |
+243977482844 | +243977482847 |
Kalemie | Kisangani |
Avenue Lumumba, No. 54 | Boulevard General Mulamba No. 33 |
Kataki District – Lac Municipality – Kalemie | Municipality of Makiso – City of Kisangani – Province of Tshopo. |
+243977482849 | +243977482850 |
Different types of credits and mode of granting
- Express credit:
It is a cash facility open to natural and legal persons who, in an emergency, find themselves in the obligation to clear their goods, to pay salaries or to meet pressing needs of an economic or other nature.
Duration : 60 days maximum
Rate by number of days :
- 1 to 30 days: 4%
- 1 to 60 days: 4% the 1st month and 4% the 2nd
- For a 60-day express credit repayable in two installments, interest will be calculated as follows:
- 1st installment: 4% of the total amount;
- 2nd installment: 4% of the amount remaining due
- Exceeded the due date, the amount is subject to late payment penalties or interest. This interest on late payment is ordinary interest increased by 4%, that is to say 8% in all.
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Method of study of the file :
- Submit the credit application and complete the express credit application form
- After analysis by the technical department, the manager seeks the approval of the Chairman of the Credit Committee and, if possible, involves the other members of this Credit Committee and the Chairman of the Board of Directors for knowledge;
- Grant by writing.
nbsp Goal and cap for express credits: see in the table below
- Ordinary credits
They are called ordinary because they follow the normal course of treatment by COOPEC in terms of procedure, duration, purpose and pre-established ceiling.
The applicant submits his loan application to the COOPEC. The repayment of capital is constant and interest is paid on the outstanding capital. They are contracted more for commercial activities, home improvement, equipment, agriculture, agro-pastoral, social cases and entrepreneurship/craftsmanship.
- Housing credit: This credit is granted to members who wish to obtain land, improve their homes or construct buildings and other infrastructures.
- Agro-pastoral credit: This credit is granted to professional farmer members and those who raise barnyard animals, sheep and cattle.
- School credit: COOPEC Bonne Moisson finances the schooling needs of its members and/or their children. These tuition needs include school/academic fees, school supplies, books, school requirements for clothing and equipment such as uniforms, overalls, tools, materials, etc.
- Social credits: These credits concern the needs relating to the social facts of the members such as the wedding/party, medical care, funeral expenses/mourning, food needs, travel, etc.
Duration of the credit : 18 months maximum, that is to say 18 monthly payments. However, the credit can be requested for a duration shorter than the maximum duration of 18 months (1 month, 2 months, 3 months, etc.)
Refund method :
The credit is repaid in accordance with the deadlines agreed in the loan agreement:
- As many times in relation to the duration of the credit;
- By monthly installments.
Currently, reimbursement by monthly installments is the mode most favored by the COOPEC.
Each month counted, the date on which the member's account was credited with the loan serving as a reference, the member is debited with the monthly installment of the loan and interest calculated on the amount remaining due. It goes without saying that when the credit is granted, the member first pays the preliminary costs, ie those relating to the preparation and study of the credit file.
In the first month that follows, the member reimburses the first installment and the interest on the amount of the credit, the interest on the second reimbursement is calculated on the total amount due and is withheld at the same time as the second installment, and so on. The monthly installment reimbursed late generates late payment interest calculated on a pro rata basis for the days in arrears from the day after the due date.
Credit rates : They vary according to the goal as shown in the following table:
Table n°1: Types of ordinary loans
nbsp No. | nbsp Purpose (Assignment) | nbsp Ceiling | Normal interest rate | Late payment interest rates | nbsp Total |
1 | Trade | $50,000 | 3% | 3% | 6% |
2 | Craft or entrepreneurship | $3,000 | 2.5% | 2.5% | 5% |
3 | Equipment | $15,000 | 2.5% | 2.5% | 5% |
4 | Home improvement | $20,000 | 2.5% | 2.5% | 5% |
5 | Agriculture and Livestock | $3,000 | 2% | 2% | 4% |
6 | School credit | $3,000 | 2% | 2% | 4% |
7 | Weddings and parties | $2,000 | 2.5% | 2.5% | 5% |
8 | Medical care | $2,000 | 2% | 2% | 4% |
9 | Alimentary consommation | $500 | 2% | 2% | 4% |
10 | Funeral expenses | $2,000 | 2% | 2% | 4% |
11 | Travel | $3,000 | 3% | 3% | 6% |
12 | Other social cases (theft, fire, imprisonment, etc.) | $2,000 | 2% | 2% | 4% |
NB : The duration of the ordinary credit can be reviewed at the request of the members by decision of the Board of Directors if the financial health of the COOPEC allows it.
- Staff mortgage
The mortgage is granted to agents who have completed at least 3 years of service within the COOPEC. The request is addressed to the Credit Commission. The credit is granted at the subsidized rate of 1% over a maximum period of 3 years. The documents relating to the purchase of the land or the construction are entrusted to the COOPEC BONNE MOISSON until the full repayment of the loan. The credit request is studied by the Credit Committee and validated by the Board of Directors. In the event of resignation or dismissal of the agent, the final account is retained in the first place and the realization of the guarantee for credit balance.
2. Loans with joint surety
They are granted to people who have not yet had a mortgage guarantee.
The borrower must have at least three active guarantor members with no credit. A member can sponsor only one credit, he is released from it only with the integral refunding of the credit which he endorsed. Agents and directors cannot endorse a member.
3. Solidarity credit
It is granted to the group of people who have not yet had a mortgage guarantee. The guarantors are the members of the group and are jointly and severally liable for the loan.
Table 2: Sizes of solidarity groups
nbsp Category | nbsp Number of members | nbsp Interest rate | Default interest | nbsp Total | nbsp Ceiling |
I | 3 to 5 | 2% | 2% | 4% | $2,000 |
II | 6 to 15 | 2% | 2% | 4% | $2,500 |
III | 16 to 25 | 2% | 2% | 4% | $3,000 |
IV | THIS/ WITH | 2% | 2% | 4% | $4,000 |
V | SACCOS/VICOBA/ Mutual | 2% | 2% | 4% | $10,000 |
CECI= Internal Savings and Credit Union
SACCOS= Saving and Credit Cooperative Society
WITH= Village Savings and Credit Association
VICOBA= Village Community Bank
Duration : 6 months maximum
The solidarity group must first present its legalized Internal Rules.
NB :
- In the event of late repayment, there should be no question of first clearing the principal and then regularizing ordinary interest and default interest. Any debit notice relating to the recovery of an unpaid debt must necessarily contain an amount withheld from the principal due, regular interest not yet collected and default interest.
- The value and veracity of the reason for the delay does not exclude the payment of ordinary interest and/or late payment interest to run, except in cases of force majeure and after deliberation by the Board of Directors.
Coverage area
Goma and Beni